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The government on Wednesday approved a Rs 17,408.85 crore 'committed price support' to the Cotton Corporation of India (CCI) for seven cotton seasons from 2014-15 to 2020-21.
The decision was taken at the Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Narendra Modi.
The CCEA has approved incurring expenditure for reimbursing losses under MSP operations for cotton during the cotton season (October-September) 2014-15 to 2020-21.
The CCEA has given its approval for committed price support of Rs 17,408.85 crore to the CCI for the cotton seasons from 2014-15 to 2020-21 (up to September 30, 2021), an official release said.
In order to safeguard the interests of the cotton farmers, the government said the CCI procured cotton in large quantity during 2014-15 to 2020-21 as cotton prices touched the MSP prices.
The procurement of cotton at MSP helped stabilise the cotton prices and alleviate farmer's distress.
Briefing media on the Cabinet decisions, I&B Minister Anurag Thakur said the CCI and authorised agencies procured 123 lakh cotton bales in 2019-20 and 100 lakh bales in 2020-21. The annual production is estimated at 350-360 lakh bales.
During cotton season 2020-21, area under cotton cultivation was 133 lakh hectares with estimated production of 360 lakh bales, which accounted for around 25 per cent of total global cotton production. The government fixes the MSP for seed cotton (kapas) on the basis of the recommendations of CACP.
In another decision, the Cabinet approved reservation norms for Jute Packaging Materials for Jute Year 2021-22.
As per the reservation norms, Thakur said, 100 per cent foodgrains and 20 per cent of sugar will be packed in jute bags during Jute Year 2021-22 under JPM Act, 1987.
The decision is likely to bring relief to 3,70,000 workers employed in jute mills and ancillary units.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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First Published: Wed, November 10 2021. 16:39 IST